Mumbai: The country's power generation is expected to grow by 8.7 percent this fiscal on the back of availability of coal and completion of a unit at Kudankulam plant, CMIE said in a report.

"During the first half of the fiscal, power generation grew a mere 4.8 percent. However, the growth in power generation is expected to pick up in the second half of the fiscal. We expect power generation to grow by 10.7 percent in the second half of the year. And for the year, the growth average will be at 8.7 percent," Centre for Monitoring Indian Economy (CMIE) said.

It attributed the higher growth in the second half of the year to greater availability of coal, completion of unit 1 (1,000 mw) of Kudankulam power plant and pick-up in hydel power output.

The economic think-tank expects the thermal power generation to increase in coming months.

"The growth in thermal power generation is likely to accelerate in the coming months. We expect thermal power generation to grow by 12.7 percent during October-March.

"During this period, coal availability to power plants is expected to improve on the back of higher production and imports of the fossil fuel. This will enable thermal power plants to raise their output," CMIE said.

It further added that commissioning of the unit at Kudankulam will accelerate the nuclear power generation.

"Nuclear power generation is expected to grow by 17.6 percent in the second half against a mere 2.4 percent rise reported in the first half. Commissioning of unit 1 (1,000 mw) of Kudankulam power project will drive nuclear generation upwards in the second half," it said.

However, CMIE said the hydel power generation is likely to fall due to poor monsoon this year.

"Hydel power generation is expected to fall by 4 percent in FY13. During April-September period, hydel power generation witnessed a steep 18.4 percent fall. Delayed monsoon took a toll on hydel power generation in the first half. However, the situation is likely to improve in the second half, with higher availability of water. Hydel power generation is expected to grow by 9.7 percent in the second half," it said.